New Delhi, Oct 10 (NationPress) Following the recent rise in minimum support prices (MSP) for various crops, farmers are projected to receive Rs 84,263 crore for the rabi marketing season of 2026–27. This estimate is based on a government procurement forecast of 297 lakh metric tonnes, as per an official announcement released on Friday.

The financial support provided to farmers through MSP has seen a significant increase, with payouts soaring from Rs 1.06 lakh crore in 2014-15 to Rs 3.33 lakh crore for the period of July 2024-June 2025. In terms of procurement, this has risen from 761.40 lakh metric tonnes to 1,175 lakh metric tonnes, benefiting an estimated 1.84 crore farmers.

MSP serves as a vital support system, ensuring that farmers can sell their crops at a pre-established price, thereby reducing financial risks.

For instance, a wheat farmer can expect Rs 2,585 per quintal for their produce (MSP for 2026-27), providing security against potential market price declines. Similarly, a paddy grower may sell their common paddy to government agencies at Rs 2,369/quintal (MSP for 2025-26). This guaranteed pricing encourages farmers to invest in superior seeds and technologies without the fear of forced sales.

Since the 2018-19 fiscal year, the government has been consistently raising MSPs to align with the announcement in the Union Budget to set MSP at a minimum of 1.5 times the production cost. This policy guarantees a minimum return of 50 percent over the all-India weighted average production cost for all crops.

The Cabinet officially approved this MSP increase for all mandated rabi crops for the 2026-27 marketing season on October 1. Additionally, there has been a rise in MSP for mandated crops in the Kharif Marketing Season 2025-26 to ensure fair pricing for farmers.

For the rabi marketing season of 2026–27, profit margins over production costs are projected to peak at 109 percent for wheat.

To achieve self-sufficiency in pulses, the government plans to procure 100 percent of tur (arhar), urad, and masoor until 2028–29, with 2.46 lakh tonnes of tur already procured by March 2025.

Indian farmers face unpredictable weather conditions and market fluctuations that can jeopardize their livelihoods. Adverse weather events like unseasonal rainfall, droughts, or floods can devastate months of hard work almost overnight.

Even if crops are successfully harvested, fluctuating market prices can lead farmers to engage in distress sales, often resulting in prices significantly lower than the production cost.

This situation poses a significant risk for small and marginal farmers who rely solely on agriculture for their income, leading to rising debts, loss of revenue, and in some cases, the abandonment of farming altogether. Herein lies the importance of the MSP, which serves as a vital support system for these farmers.